Gordmans Continues Parade Of Bankruptcies

(RTTNews) - Discount-store chain Gordmans Stores Inc. (GMAN) filed for bankruptcy on Monday and said its stores will be liquidated. The company is the latest retailer to file for bankruptcy amid sluggish mall traffic and as shoppers increasingly shift to online sales.

Omaha, Nebraska-based Gordmans, founded in 1915, said it filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Nebraska.

The century-old retailer also entered into an agreement with Tiger Capital Group, LLC and Great American Group, LLC for the sale in liquidation of the inventory and other assets of Gordmans' retail stores and distribution centers. This is subject to the receipt and bankruptcy court approval of a more favorable transaction.

The company noted that the ultimate outcome of the filing and liquidation sale is subject to the oversight and approval of the Bankruptcy Court.

Andy Hall, president and chief executive officer of Gordmans said, "Until further notice, all Gordmans stores are operating as usual without interruption. The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process."

Gordmans' range of merchandise includes apparel and footwear as well as accessories, home décor, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys. The company currently operates 106 stores in 22 states and employs about 5,100 people.

Gordmans was acquired by private equity firm Sun Capital Partners in 2008 and taken public two years later. The company, which has posted losses in five of the past six quarters, also announced job cuts in January.